Investment Rating - Industry investment rating: "Overweight (Maintain)" [2] Core Viewpoints - The introduction of the "2025 Measures" marks a significant upgrade in China's support policies for innovative drugs, transitioning from "framework support" to "precise breakthroughs" [6][7] - The innovative drug market in China is expected to maintain a growth rate of 12%-15% in 2025, following a market size exceeding 1.3 trillion yuan in 2024, which represents a year-on-year growth of over 15% [6][7] - The report emphasizes the dual drivers of policy support and technological breakthroughs, indicating that the Chinese innovative drug industry is entering a golden development period [6][7] Summary by Sections Recent Industry Performance - Relative returns over the past month: -0.15%, over three months: 5.42%, and over twelve months: 4.76% [3] - Absolute returns over the past month: 2.52%, over three months: 6.85%, and over twelve months: 18.66% [3] Policy Developments - The "2025 Measures" aim to create a closed-loop policy from research and development to market access and payment, addressing pain points in the innovative drug sector [6] - The measures include the use of medical insurance data to guide R&D, the establishment of a commercial insurance directory for innovative drugs, and support for building a global trading platform for innovative drugs [6] Market Opportunities - The report suggests focusing on three types of companies: global players like BeiGene and Innovent Biologics, AI-driven platform companies like WuXi AppTec, and niche innovators like Menarini and Zai Lab [7] - The report highlights the significant increase in License-out transactions, reaching $51.9 billion in 2024, a 42% year-on-year growth, showcasing the international competitiveness of Chinese innovative drugs [6][7]